Connect with us

General news

AKK gas pipeline commercially viable, can repay in 10 years – Contractor

Published

on

AKK gas pipeline commercially viable, can repay in 10 years – Contractor


Mr Emeka Okwuosa, Chairman Oilserv Ltd., says the Ajaokuta-Kaduna- Kano (AKK), gas pipeline project is commercially viable and can service its loan before the stipulated time frame.

Okwuosa in an interview with the News Agency of Nigeria in Ajaokuta said that the project,  worth 2.8 billion dollars, when concluded would bring about a lot of development in the country.

NAN reports that President Muhammadu Buhari on Tuesday virtually inaugurated the Ground Breaking Ceremony of the AKK gas pipeline project in Ajaokuta.

Oilserv, an indigenous Engineering, Procurement and Construction (EPC), Company won the contract to handle the project.

He said, “This project is commercially viable, the facility (Loan) being taken is made to be repaid  in 15 years but this project can pay itself in 10 years because this is a commercial venture.

“We have injected a Chinese partner to build the Chinese content requirement but the Oilserv is the primary EPC Company, our experience is what will help to drive the process a lot.

“We also have Oando in the consortium, Oando is Consortium partner, they are not an EPC company, we have worked together for a long time  in  other project where Oilserv is the EPC company.”

He said that the project was not the type that would require government support to be completed adding that every process in gas generated revenue.

“When you pipe this gas, you have gas flowing through. It goes to industries, power plants and there are tariffs to be paid even to transport this gas.

“If you understand the mechanism of this gas transportation, for every cubic meter of gas that passes by there is an amount that is paid.

“ In addition to that, the gas itself that passes by would have to be paid for to be used. So, this is a commercially viable project not the kind of a project that government has to support to survive,’’ Okwuosa said.

On challenges that could hinder the completion of the project he said that with the level of experience of the company it would be able to surmount any that might come along while executing the project.

Okwuosa named some of the challenges to include clearing of virgin forest, passing through rivers, breaking rocks and insecurity.

“I will not say I have fears. Every project comes with its challenges.

“There are challenges to do a project like this in a virgin forest, to go through  rivers, rocks, to deal with security, these are challenges, but I don’t have fears because we have the knowledge and experience to deal with it.

“We are very ready to deliver the project and on time,’’ he added.

“The project will create jobs for Nigerians, especially the host community and a robust programme has been created for communities that the pipeline will traverse.

“Oilserv is 100 per cent an indigenous company currently employing 600 people. With this AKK, probably we will go to 1500 to 2000 at the peak of the investment matrix.

“We will crank up our employment by  more than 1,000 and the major part of this 1,000 will be indigenes of  the areas where we pass, we have a clear programme to develop the areas where we will pass,’’ he said .

He commended President Muhammadu Buhari for the opportunity to work on the project adding that it was a clear sign that government was ready to support indigenous companies.

NAN also reports that the 2.8 billion dollars gas pipeline project is a 40-inch x 614km pipeline  that would originate from Ajaokuta, in Kogi and traverse Abuja (FCT), Niger, Kaduna and terminate at Kano.

It is expected to inject 2.2 billion standard cubic feet of gas per day to the domestic market.

Edited By: Olawunmi Ashafa/Donald Ugwu (NAN)

Nnn: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

 FG open to development, distribution of COVID-19 vaccine—Osinbajo Kwara Govt tasks principals on compliance with COVID-19 guidelines 8,323 Anambra indigenes to benefit from FG cash transfer programme-DG COVID-19: CACOVID donates food items to Yobe govt. Ogbomoso community commends Buhari for honouring late premier NEPZA mulls incentives, loans for enterprises in Free Trade Zones Bauchi Emir reinstates Bello Kirfi as Waziri of Bauchi Police arrest 45 suspects for various offences in Borno Dubai Tourism didn’t ban Nigerians from UAE- Official Coalition decries attack on Gov. Zulum’s convoy IPMAN directs members to sell petrol at N150 per litre in Kano Senate urges states to partner NBTI for job creation FUTA suspends student who allegedly hacked Premium Times website Bale left out of Real Madrid squad to face Man City Arsenal to sack 55 staff as COVID-19 hits revenues Air Chief says NAF expecting 12 additional aircrafts  APC confirms death of A’Ibom state chairman  Lagos State Governor’s Quiz Competition for Aug. 7 Student’s death: FG seals Ibadan factory E-mail marketing: Netcore Solutions highlights key metrics brands should track Troops raid pirates, militants camp, kill 6 in Bayelsa Obi sworn in to replace late Asari-Toru council boss in Rivers COVID-19: Ekiti distributes 60,000 food packs to vulnerable persons Oyo Govt. approves N59.7 million as takeoff grants for Amotekun operations FG must intervene to reduce risky sexual behaviour among adolescents-Researchers NRC unveils over 700 bidders’ pre-qualification documents Banditry: We won’t allow security challenges to escalate, says Gov. Masari COVID-19: Forum urges FG to reposition technology sector New INEC Admin Sec. assumes duty in Ilorin Blueprint publisher urges youths to embrace education, entrepreneurship COVID-19: FCTA releases protesters COVID-19: WHO deploys health experts to South Africa Obey COVID-19 guidelines, INEC tells voters, stakeholders NSE: Investors staked N3.89bn on 383.3m shares in bullish trading Gov. Matawalle directs provision of relief materials to Zurmi flood victims Presidency: God will decide my political future — Gov. Umahi Kogi proactive in dealing with COVID-19, says Commissioner COVID-19 cases in Africa close to 1m —- WHO NNPC records 43% drop in oil pipeline vandalism in May — Report Kogi declares August 18 as deadline for exam registration Kwara Gov appoints Adeboye GM for The Herald SIP: Gov. Sule flags off second phase training of CBTT in Nasarawa  COVID-19: Group presents palliatives to Plateau Govt. Edo speaker raises alarm over plot to take over Assembly Anglican synod advocates revival of ailing industries to tackle unemployment  Alleged N2bn libel: Court to hear suit against Sowore, others Sept. 30 Edo Assembly Deputy Speaker impeached Osun govt. distributes protective materials to public schools ahead resumption British lawmakers slam govt’s ‘critical errors’ in pandemic Covid-19: Hotels in Nasarawa record low patronage